Table 3-7 Assume That Japan and Korea Can Switch Between Producing Cars

question 76

Multiple Choice

Table 3-7
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.

-Refer to Table 3-7.Japan should specialize in the production of

• A) cars and import airplanes.
• B) airplanes and import cars.
• C) both goods and import neither good.
• D) neither good and import both goods.

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Definitions:

Net Gain

The difference between the selling price of an asset and its purchase price, after adjusting for costs, taxes, and other expenses.

Ratio

A numerical relationship showcasing how many times one number can include or fit into another.

Proportion

A mathematical concept that denotes a part, share, or number considered in comparative relation to a whole.

Dow Jones Industrial Index

A stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.